Carpetright profits slide

By James Davey

LONDON (Reuters) - The country's biggest carpet retailer, Carpetright, said normal trading conditions would not resume for at least 12 months as it posted a 72 percent slump in full-year profit and slashed its dividend.

"People have got a little bit more money in their pockets because interest rates are down, fuel prices are down ... They're not spending money on cars, they're not spending money on holidays and normally that's very good for us," chairman and chief executive Philip Harris told reporters on Tuesday.

"But the thing that everyone's worried about is their job."

Harris, a 51-year industry veteran, estimated the overall UK carpet market was currently down at least 20-25 percent year-on-year but said Carpetright was winning a greater share.

His view resonated with comments last week from British electrical retailers DSG International and Kesa Electricals Plc, which both reported slumps in profit and gloomy outlook statements.

However, a survey said consumer morale hit a 14-month high in June.

Shares in Carpetright have lost 16 percent of their value over the past year but have gained 45 percent over the last three months, outperforming the FTSE All Share General Retailers Index by 22 percent.

The stock was down 3 percent at 582.5 pence at 9:11 a.m. valuing the business at 386 million pounds.